It's not just a movie. Tenants from hell are out there. And they're looking for a place to live.
Ok so things probably won't get Pacific Heights bad, but putting a bad tenant in your investment property can end up being a long and stressful journey that costs you money instead earning you profit.
The tenants you put in your investment property will make or break your ROI. Choosing bad tenants, or even just the wrong ones for your property, can mean excessive management time spent and unexpected or unnecessary maintenance/repair costs.
The "Tenant from Hell" as we like to call it, will take your investment journey from a profitable venture into a huge financial loss and emotional drain. But, choosing the right tenants can take a lot of the stress out of property management and, most importantly, get you the highest ROI.
Here are TriUrban’s Top Six Signs of a Tenant from Hell:
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They Have Poor Credit
Always make sure to run a credit check on your potential tenants. This way you can ensure they really can afford the rent. You’ll want to pick a tenant who doesn’t have excessive debt payments that may impact their ability to pay on time.
Watch out for renters with an unstable credit history as they may not be responsible with their money. This is a warning sign of a tenant who might "skip town" without paying their rent.
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They Don't Have Stable Employment
Always make sure to ask for pay stubs or, even better, call a potential tenant's employers in person to find out about their work history and habits. Tenants from Hell are also often Employees from Hell and can have a history of jumping from job to job as fast as they jump from house to house. Remember: Stable tenants make good tenants.
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They Have a Criminal Record
For the most part, you don’t want to have tenants with a criminal record. Of course, there are some exceptions, but once you know what their criminal record is, you’ll be able to decide for yourself whether the information is a deal-breaker or not. You can ask your potential renter to provide you with a background check, which they can get at any local Police or RCMP station in or around Edmonton.
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They Have Bad Rental References
One of the most important things to check for when deciding whether potential tenants will be good is their rental references. It’s critical that you always contact at least one of your potential tenant’s previous landlords to find out about their rental history. If they've ever been evicted from a property, it's obviously a bad sign.
But, good tenants are most likely to remain good tenants over time, so if a landlord speaks highly of someone, it’s safe to assume they’ll be a good choice for you’re investment property.
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They Don't Fit Your Property “Rules”
Every landlord has “rules” or their property. Whether in regards to pets, smoking, subletting, or various other items, your rules are your rules for a reason and you want tenants that will abide by them.
Always inform potential tenants of your guidelines and rules and gauge their reactions. Tenants from Hell don't care about following the rules, so if they don't seem to be taking you seriously - be wary. This is also something you'll want to ask previous landlords about.
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They’re Unfriendly
It might seem like a small thing, but friendly tenants can make all the difference in the world. Tenants from Hell not only make your life more difficult in terms of maintenance, management, and ROI, they're often rude and uncaring in person.
Friendly renters means you can look forward to completing management responsibilities because they’ll be easy, even fun, to interact with.
Learn to Recognize the Signs with TriUrban
TriUrban’s team of professional investors has been buying property, and selecting tenants for that property, for a long time. We've seen plenty of Tenants from Hell, so we know the signs. We also know the signs of a good tenant (pretty much the opposite of the list above) and we're always happy to help our clients learn to pick the right ones. Contact us today if you’re interested in finding the right Edmonton property, and the right tenants, to get you a maximum ROI.
Plus, stay tuned to our blog to learn about how certain property types can help you attract the best tenants, and avoid the Tenants from Hell.
